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Deutsche Bank Research highlights the strategic significance of the recently concluded India-EU Free Trade Agreement (FTA), which opens up the European market for Indian businesses. The FTA is expected to enhance competitiveness in various sectors, including textiles and automobiles, while also empowering workers and integrating Indian businesses into global value chains. The report emphasizes India's growth potential, projecting a real GDP growth of 6.5-7.0% in the coming years.
"The India-EU FTA is strategically significant and signals confidence between two large, complementary economies (India is the 4th-largest economy, the EU is 2nd-largest, representing 25% of global GDP) as trusted partners."
"India offers scale, growth (likely to grow 6.5-7.0% in real terms for the next several years), and a rapidly maturing industrial ecosystem; Europe brings capital depth, advanced manufacturing, and strong regulatory frameworks."
"The India–EU FTA gives a decisive boost to its labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles, bringing down tariffs of up to 10% on almost USD 33 bn of exports to zero."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
